Insuring Clause (A): Kidnapping, Extortion Threat and Express Kidnap Coverage

Transcription

1 In consideration of payment of the premium and subject to the Declarations, General Terms and Conditions, and the limitations, conditions, provisions and other terms of this, the Company and the Insureds agree as follows: I. INSURING CLAUSES Insuring Clause : Kidnapping, Extortion Threat and Express Kidnap Coverage The Company shall reimburse the Parent Organization for loss of property or other consideration surrendered as payment by or on behalf of an Organization resulting from Kidnapping, Extortion Threat or Express Kidnap. Insuring Clause : Custody Coverage The Company shall reimburse the Parent Organization for loss caused by actual destruction, disappearance, confiscation or unlawful taking of property or other consideration, which is intended as payment for a covered Kidnapping or Extortion Threat while being held or conveyed by a person authorized by an Organization. Insuring Clause : Expense Coverage The Company shall reimburse the Parent Organization for Expenses paid by an Insured resulting from a covered Kidnapping or Extortion Threat, or resulting from a Hijacking, Political Threat or Wrongful Detention. Insuring Clause : Accidental Loss Coverage The Company shall pay the applicable Benefit Amount set forth in Item 2 of the KR&E Declarations for Accidental Loss from a covered Kidnapping, or resulting from a Hijacking, Political Threat, Wrongful Detention, Express Kidnap, or Hostage Crisis. Insuring Clause (E): Legal Liability Costs Coverage (E) The Company shall reimburse the Parent Organization for Legal Liability Costs. Insuring Clause (F): Emergency Political Repatriation Expense Coverage (F) The Company shall reimburse the Parent Organization for Repatriation Expenses incurred by an Organization resulting from Emergency Political Repatriation in the amount set forth in Item 2(F), Emergency Political Repatriation Expense Coverage, of the KR&E Declarations, which amount is part of and not in addition to the Limit of Liability set forth in Item 2, Expense Coverage, of the KR&E Declarations. Insuring Clause (G): Disappearance Investigation Expense Coverage (G) The Company shall reimburse the Parent Organization for Expenses paid by an Insured resulting from a covered Disappearance in the amount set forth in Item 2(G), Disappearance Investigation Expense Coverage, of the KR&E Declarations, which amount is part of and not in addition to the Limit of Liability set forth in Item 2, Expense Coverage, of the KR&E Declarations. Insuring Clause (H): Express Kidnap Costs Coverage (H) The Company shall reimburse the Parent Organization for Express Kidnap Costs. Insuring Clause (I): Hostage Crisis Costs Coverage (I) The Company shall reimburse the Parent Organization for Hostage Crisis Costs (12/2010) Page 1 of 14 <NYFTZFOOTER><NYFTZNOTICE>

2 II. DEFINITIONS For purposes of this : Accidental Loss means Loss of Life, Loss of Use, Loss of Sight, Loss of Speech and/or Hearing, or Mutilation of an Insured Person when such Accidental Loss: is sudden, unforeseen, unexpected and independent of any illness, disease or other bodily malfunction of such Insured Person; and happens by chance and arises from a source external to such Insured Person. Computer System means any computer or network of computers of an Organization including its input, output, processing, storage and communication facilities, and shall include off-line media libraries. Computer Violation means an unauthorized: entry into or deletion of data from a Computer System; change to data elements or program logic of a Computer System, which is kept in machine readable format; or introduction of instructions, programmatic or otherwise, which propagate themselves through a Computer System, directed solely against any Organization. Contaminate means to introduce a foreign material or substance, which would render any tangible property unfit for use or sale. Disappearance means the unexplained vanishing by an Insured Person for a period of longer than thirty-six (36) hours (other than a Hijacking, Wrongful Detention, Express Kidnap, or Hostage Crisis), provided the vanishing has been reported to the local authorities, and a ransom demand has not been made in connection therewith. The Disappearance of two or more Insured Persons last seen or reported together shall be treated as one Disappearance. Disappearance Investigation means an investigation launched by an Organization as the direct result of a Disappearance. Emergency Political Repatriation means the return of an Insured Person, who is a temporary resident or temporary business traveler in another country, to his or her Resident Country necessitated by: an official of the Resident Country or the Temporary Resident Country issuing, for reasons other than medical, a recommendation that categories of persons which include the Insured Person should leave such Temporary Resident Country; an Insured Person being expelled or declared persona non grata on the written authority of the recognized government of the Temporary Resident Country; or wholesale seizure, confiscation or expropriation of the property, plant and equipment of an Organization. Employee means any natural person in the regular service of an Organization in the ordinary course of such Organization s business, whom such Organization governs and directs in the performance of such service, including any Executive, a part-time, seasonal, leased and temporary employee, intern or volunteer; or an Independent Contractor, while acting within the scope of his or her duties as an Independent Contractor. Event Benefit Amount means the amount set forth in Item 2(ii) of the KR&E Declarations. Executive means any natural person specified below: a duly elected or appointed director, officer, trustee, in-house general counsel or duly constituted committee member of any Organization incorporated in the United States of America; (12/2010) Page 2 of 14

3 a duly elected or appointed: (1) manager or member of the Board of Managers or equivalent position; (2) duly constituted committee member; (3) in-house general counsel; or (4) trustee, of any Organization formed as a limited liability company in the United States of America; or a holder of an equivalent position to those described in Subsections or above in any Organization incorporated, formed or organized anywhere in the world. Expenses means: in connection with Kidnapping, Extortion Threat, Political Threat, Hijacking, Wrongful Detention or Disappearance Investigation only the reasonable fees and expenses for, or cost of: (1) an independent security consultant; (2) an independent public relations consultant; (3) travel and accommodations of an Insured Person; (4) independent legal advice (other than those described in Insuring Clause (E), Legal Liability Costs Coverage); (5) temporary independent security measures set up solely for protecting an Insured Person, or property, in the country where the Kidnapping, Extortion Threat, Political Threat, Hijacking, Wrongful Detention or Disappearance has occurred, at the specific direction of The Ackerman Group or any other security consultant, incurred with the Company s prior written approval; (6) independent security guard services for up to ninety (90) days; (7) advertising, communications and recording equipment; (8) an independent forensic analyst; (9) assessment of an Extortion Threat or Political Threat by an independent security consultant; (10) interest for a loan taken by an Insured for property or other consideration surrendered as payment under Insuring Clause, Kidnapping, Extortion Threat and Express Kidnap Coverage; (11) a reward paid by an Organization to a natural person who provides information leading to the arrest and conviction of the person(s) responsible for Kidnapping, Extortion Threat, Wrongful Detention, Hijacking or Disappearance; (12) the Salary which an Organization continues to pay an Employee following the Kidnapping, Wrongful Detention, Hijacking or Disappearance of such Employee; such coverage shall apply to the Salary in effect at the time of such Kidnapping, Wrongful Detention, Hijacking or Disappearance and will end ninety (90) days after such Employee is released or suffers Loss of Life, or solely with respect to Wrongful Detention or Hijacking, for sixty (60) months thereafter; whichever is more recent; (13) the Salary or wages which an Organization pays a newly hired natural person to conduct the duties of an Employee following the Kidnapping, Wrongful Detention, Hijacking or Disappearance of such Employee; such coverage shall apply to such Salary in effect at the time of such Kidnapping, Wrongful Detention, Hijacking, or Disappearance and will end ninety (90) days after such Employee is released or suffers Loss of Life, or solely with respect to Wrongful Detention or Hijacking, for sixty (60) months thereafter; whichever is more recent; (14) the Salary which an Organization pays an Employee or the amount paid by an Organization to a Relative equal to the salary or wages of such Relative, who assists in negotiations and rehabilitation of the victim during and following an incident of Kidnapping, Wrongful Detention, Hijacking or Disappearance not to exceed a period of ninety (90) days following the end of the Kidnapping, Wrongful Detention, Hijacking or Disappearance incident, provided that the Insured submits a written account of such Employee s or Relative s involvement in the negotiation and rehabilitation process, and such Employee s or Relative s specific compensable services and expenses; (12/2010) Page 3 of 14

4 (15) reasonable fees and expenses for, or cost of retraining, an Employee after his or her release from a covered Kidnapping, Wrongful Detention, Hijacking or Disappearance including the Salary that an Organization continues to pay such Employee while being retrained, and the reasonable fees and expenses for the cost of external training courses; (16) consequential personal financial loss which an Insured Person suffers as the result of such Insured Person s inability to attend to personal financial matters; (17) reasonable medical, mental health, dental and cosmetic expenses, including the cost of plastic surgery, incurred following an Insured Person s release; (18) reasonable expenses of rest and rehabilitation, including meals and recreation, for up to ninety (90) days when such expenses are incurred within twelve (12) months following an Insured Person s release; and in connection with an Extortion Threat to Contaminate Merchandise, Recall Expenses; and other reasonable expenses incurred by an Organization, subject to the Company s prior written approval. Express Kidnap means the unlawful detention of an Insured Person (other than a Kidnapping, Hijacking, Hostage Crisis or Wrongful Detention) that: lasts for less than six (6) hours; is carried out by violence or threat of violence by a person or group; commences while the Insured Person is traveling in or entering/exiting a motor vehicle; and involves the perpetrator(s) demand of property or other consideration as a condition of that Insured Person s release. Express Kidnap Costs means, in connection with an Express Kidnap, only the reasonable fees and expenses for, or cost of: (E) (F) an independent security consultant, independent public relations consultant and an independent forensic analyst; travel and accommodations of an Insured Person; independent legal advice (other than those described in Insuring Clause (E), Legal Liability Costs Coverage) and reasonable medical, mental health, dental and cosmetic expenses, including the cost of plastic surgery, incurred following an Insured Person s release; consequential personal financial loss which an Insured Person suffers as the result of such Insured Person s inability to attend to personal financial matters; reasonable expenses of rest and rehabilitation, including meals and recreation, for up to ninety (90) days when such expenses are incurred within twelve (12) months following an Insured Person s release; and the Salary or wages which an Organization pays a natural person temporarily hired to conduct the duties of an Employee following the Express Kidnap of such Employee; such coverage shall apply to such Salary or wages in effect at the time of such Express Kidnap and will end 180 days after such Employee is released or suffers Loss of Life. Extortion Threat means a threat or threats against an Insured to: commit a Kidnapping of, do bodily harm to, wrongfully abduct or detain any Insured Person; damage, destroy or Contaminate an Organization s Property; disseminate, divulge or utilize Proprietary Information; disseminate or make public negative information regarding Merchandise; or (12/2010) Page 4 of 14

5 (E) adulterate or destroy any Computer System by a Computer Violation, made by a person or group, whether acting alone or in collusion with others, demanding payment or a series of payments in exchange for the mitigation or removal of such threats. All such threats: (1) related by a common committed, attempted or threatened wrongful act; or (2) made contemporaneously against the same Insured, shall be deemed to constitute a single Extortion Threat. Hijacking means the unlawful detention of an Insured Person (other than a Kidnapping, Wrongful Detention, Disappearance, Express Kidnap or Hostage Crisis) by violence or threat of violence by a person or group, where such unlawful detention occurs while traveling on or in an aircraft, watercraft, railroad car or motor vehicle. Hostage Crisis means an actual wrongful abduction and holding of an Insured Person under duress (other than a Kidnapping, Hijacking, Wrongful Detention, Disappearance or Express Kidnap) by one party in a conflict with another party, where the holding party demands from the other party satisfaction of specified terms in exchange for the release of such Insured Person, and the person from whom such satisfaction of specified terms is demanded is within hearing or sight distance of the Insured Person. Hostage Crisis Costs means: in connection with a Hostage Crisis, only the reasonable fees and expenses for, or cost of: (1) an independent security consultant and independent public relations consultant; (2) travel and accommodations of an Insured Person; (3) independent legal advice (other than those described in Insuring Clause (E), Legal Liability Costs Coverage); (4) temporary independent security measures set up solely for protecting an Insured Person, or property, in the country where the Hostage Crisis has occurred, at the specific direction of The Ackerman Group or any other security consultant, incurred with the Company s prior written approval; (5) independent security guard services for up to ninety (90) days; (6) the Salary which an Organization continues to pay an Employee following the Hostage Crisis of such Employee; such coverage shall apply to the Salary in effect at the time of such Hostage Crisis and will end ninety (90) days after such Employee is released or suffers Loss of Life; (7) the Salary or wages which an Organization pays a newly hired natural person to conduct the duties of an Employee following the Hostage Crisis of such Employee; such coverage shall apply to such Salary in effect at the time of such Hostage Crisis and will end ninety (90) days after such Employee is released or suffers Loss of Life; (8) the Salary which an Organization pays an Employee or the amount paid by an Organization to a Relative equal to the salary or wages of such Relative, who assists in negotiations and rehabilitation of the victim during and following an incident of Hostage Crisis not to exceed a period of ninety (90) days following the end of the Hostage Crisis incident, provided that the Insured submits a written account of such Employee s or Relative s involvement in the negotiation and rehabilitation process, and such Employee s or Relative s specific compensable services and expenses; (9) reasonable medical, mental health, dental and cosmetic expenses, including the cost of plastic surgery, incurred following such Insured Person s release; and other reasonable expenses incurred by an Organization, subject to the Company s prior written approval (12/2010) Page 5 of 14

6 Independent Contractor means any natural person independent contractor while in the regular service of an Organization in the ordinary course of such Organization s business, pursuant to a written contract for services between such Organization and either such natural person independent contractor or any other entity acting on behalf of such natural person independent contractor, provided that coverage for such Independent Contractor is not provided by any other policy of insurance. Independent Contractor shall not include any person other than the person who performs the services for the Organization, nor shall it include family members or guests or any other individuals in similar relationships to, any Independent Contractor. Insured means any Organization and any Insured Person. Insured Event means Kidnapping, Extortion Threat, Wrongful Detention, Political Threat, Hijacking, Disappearance, Express Kidnap or Hostage Crisis. Insured Person means any : (E) Employee; Relative of an Employee; natural person who is employed in the household of an Employee while in the home of such Employee; natural person who is a normal resident or a guest while in the home of an Employee; customer or guest of an Organization while on the Premises; (F) (G) guest of an Employee, or customer or guest of an Organization, while traveling with an Employee; or natural person who is temporarily retained by any Insured or an independent security consultant to deliver a ransom or extortion payment. Kidnapping means an actual or alleged wrongful abduction, and holding under duress or by fraudulent means (other than a Hijacking, Hostage Crisis or an Express Kidnap), of an Insured Person, by a person or a group, whether acting alone or in collusion with others which includes a demand or a series of demands for payment or a series of payments by an Insured, in exchange for the release of such Insured Person. Legal Liability Costs means the reasonable defense costs incurred by an Organization and damages which such Organization becomes legally obligated to pay as a result of a judgment or settlement in any suit brought by an Insured Person (or the estate, heirs or legal representatives of such Insured Person) alleging negligence or legal incompetence: in the hostage retrieval operations or negotiations in a covered Kidnapping, Hijacking, Political Threat, Wrongful Detention, Express Kidnap or Hostage Crisis or a covered event as described in Subsection of the definition of Extortion Threat of such Insured Person; or in the prevention of a covered Kidnapping, Hijacking, Political Threat, Wrongful Detention, Express Kidnap or Hostage Crisis or a covered event as described in Subsection of the definition of Extortion Threat of such Insured Person, provided that the Organization agrees as a condition precedent to coverage hereunder to cooperate with the Company in conducting the defense or in negotiating the settlement of such suit. Loss of Life means: death, including clinical death, determined by a medical examiner or similar local governing medical authority; or the absence of communication from an Insured Person or those responsible for the Kidnapping, Hijacking, Wrongful Detention, Express Kidnap or Hostage Crisis of such Insured Person for a period of two (2) years following the later of: (1) such Kidnapping, Hijacking, Wrongful Detention, Express Kidnap or Hostage Crisis; (12/2010) Page 6 of 14

7 (2) the last communication from such Insured Person; or (3) the last communication from those responsible for such Kidnapping, Hijacking, Wrongful Detention, Express Kidnap or Hostage Crisis. Loss of Life Benefit Amount means that amount set forth in Item 2(i) of the KR&E Declarations. Loss of Sight means legal blindness or the permanent total loss of sight. Loss of Speech and/or Hearing means the permanent total loss of the capability of speech and/or hearing. Loss of Use means the permanent total loss of function of a foot, hand or both thumb and index finger. Merchandise means an Organization s inventory, raw materials, work in progress or products manufactured or distributed by an Organization. Mutilation means the permanent total loss of an entire finger, toe, ear, nose or genital organ. Organization s Property means all Premises and Merchandise of an Organization and any other real or tangible personal property, owned by or leased by an Organization, for which an Organization is legally liable, or located on such Premises or on any land adjacent to or occupied by an Organization in conducting its business. Political Threat means the threat to do bodily harm to any Insured Person by a person or group: acting as an agent of, or with tacit approval of, any government or governmental entity; or acting or purporting to act on behalf of any political terrorist or insurgent party, organization or group. Premises means buildings, facilities or properties occupied by an Organization in conducting its business. Proprietary Information means any confidential, private or secret information unique to the Organization s business including client lists, drawings, negatives, microfilm, tapes, transparencies, manuscripts, prints, computer discs or other records of a similar nature which are protected by physical or electronic control or other reasonable efforts to maintain nondisclosure of such information. Recall Expenses means only the reasonable fees and expenses for, or the costs of: transportation; and other reasonable expenses, subject to the Company s prior written approval, incurred by an Organization in the withdrawal, physical inspection or destruction of Merchandise. Relative means spouse, domestic partner, siblings, spouse s siblings, ancestors, spouse s ancestors, lineal descendants or lineal descendants spouses. Lineal descendants include adopted children, foster children and stepchildren. Ancestors include adoptive parents and stepparents. Repatriation Expenses means only the following reasonable fees and expenses incurred by any Insured Person who is a temporary resident or temporary business traveler: for travel to the nearest place of safety or to his or her Resident Country; for accommodations for a maximum of seven (7) days; the Salary which an Organization continues to pay an Employee who is the subject of an Emergency Political Repatriation; provided that such coverage shall apply to the Salary in effect at the time of the Emergency Political Repatriation and shall end on the earlier of 120 days thereafter, or the date of the return of the Employee to his or her Resident Country; and other reasonable fees and expenses incurred with the Company s prior written approval, resulting from an Emergency Political Repatriation of an Insured Person (12/2010) Page 7 of 14

8 Resident Country means, for the purposes of: an Emergency Political Repatriation, the country of which the Insured Person is a national; or a Wrongful Detention, the country of which the Insured Person is a national or the country where an Organization is headquartered. Salary means compensation an Organization pays an Employee, including bonus, commission, incentive payments and the cost of health, welfare and pension benefits. Temporary Resident Country means the country in which the Insured Person is a temporary resident. Wrongful Detention means wrongful involuntary confinement of an Insured Person (other than Kidnapping, Hijacking, Express Kidnap or Hostage Crisis) for a period of not less than four (4) hours by others. III. EXCLUSIONS No coverage will be available for: (1) Fraudulent or Dishonest Acts (a) loss due to any fraudulent, dishonest or criminal acts of an identifiable Employee of an Organization acting alone or in collusion with others, unless the loss is in excess of the amount available to the Organization, whether collectible or not, under any other bond, insurance or indemnity which would cover the loss in whole or in part, in which case this shall cover only such excess; or (b) loss sustained by one Insured to the advantage of any other Insured; (2) Reasonable Efforts loss resulting from fraud by an Insured Person allegedly the subject of a Kidnapping, Extortion Threat, Wrongful Detention, Political Threat, Hijacking, Disappearance, Express Kidnap or Hostage Crisis, if an Organization had not made reasonable efforts to determine that such a Kidnapping, Extortion Threat, Wrongful Detention, Political Threat, Hijacking, Disappearance, Express Kidnap or Hostage Crisis was genuine; (3) Personal Assets loss of property or other consideration surrendered or intended to be surrendered as payment by or on behalf of an Insured Person unless an Organization agrees that such payment is on behalf of such Organization; (4) Business Income loss of income not realized by an Organization as the result of a covered loss; (5) Recall Expenses Recall Expenses caused by: (a) (b) refunds for, the value of or the cost of replacing any withdrawn, damaged or destroyed Merchandise; or any loss, fees or expenses incurred for any known or suspected defect, deficiency or use of substandard or flawed materials necessitating the withdrawal, physical inspection or destruction of Merchandise in the absence of an Extortion Threat against such Merchandise; (6) Violation of Law or Regulation loss from Wrongful Detention or Political Threat caused by: (a) any violation of criminal law by an Insured if such violation would be considered a criminal violation in such Insured s Resident Country, unless it is determined by the Company that such allegations are fraudulent and politically motivated; or (12/2010) Page 8 of 14

9 (b) failure of an Organization or an Insured Person to procure or maintain proper immigration, work, residence or similar visas, permits or other documentation; (7) Emergency Political Repatriation loss from Emergency Political Repatriation caused by: (a) (b) (c) (d) (e) (f) violation by an Organization or an Insured Person of the laws or regulations of the country from which the Insured Person is repatriated; an Organization or an Insured Person failing to procure or maintain proper immigration, work, residence or similar visas, permits or other documentation; a debt, insolvency, commercial failure, repossession of any property by a title holder or any other financial cause; an Insured s failure to honor any contractual obligation or bond or to obey any conditions in a license; any natural disasters, including any earthquake, flood, fire, famine, volcanic eruption or windstorm; ionizing radiations or contamination by radioactivity from any irradiated nuclear fuel or nuclear waste; or the radioactive, toxic, explosive or other hazardous properties of any nuclear assembly or nuclear component thereof; or (g) the relocation of any Insured Person from their Resident Country; (8) Accidental Loss Fraud loss resulting from fraud by an Insured Person allegedly the subject of an Accidental Loss; or (9) Notice loss, unless the Kidnapping, Extortion Threat, Wrongful Detention, Political Threat, Hijacking, Disappearance, Express Kidnap or Hostage Crisis occurs or is directly or indirectly communicated to any Insured prior to: (a) (b) (c) (d) termination of this as to such Insured and is discovered and communicated in writing to the Company within one (1) year following the effective date of such termination; termination of any Insuring Clause or termination of any particular coverage offered under any Insuring Clause and is discovered and communicated in writing to the Company within one (1) year following the effective date of such termination; termination in its entirety of this and is discovered and communicated in writing to the Company within one (1) year following the effective date of such termination, if this is not renewed with the Company; or termination in its entirety of this and is discovered and communicated in writing to the Company prior to such termination, if this is renewed with the Company. In addition to the Exclusions in Subsection above, no coverage will be available under: (1) Non-Aggregation Insuring Clauses, Custody Coverage;, Expense Coverage;, Accidental Loss Coverage; (E), Legal Liability Costs Coverage; (F) Emergency Political Repatriation Expense Coverage; (G), Disappearance Investigation Expense Coverage; (H), Express Kidnap Costs Coverage and (I), Hostage Crisis Costs Coverage, for loss of property and other consideration actually surrendered as a ransom or extortion payment covered under Insuring Clause, Kidnapping, Extortion Threat and Express Kidnap Coverage; (12/2010) Page 9 of 14

10 (2) Robbery Insuring Clause, Kidnapping, Extortion Threat and Express Kidnap Coverage, for loss of property or other consideration surrendered away from any Premises in any face to face encounter involving the use or threat of force or violence unless surrendered by a person in possession of such property or other consideration at the time of such surrender for the sole purpose of conveying it to pay a previously communicated ransom or extortion demand and unless actually surrendered to those responsible for such demand or their designee, provided that this Exclusion (2) shall not apply to loss resulting from Express Kidnap; (3) Burglary or Armed Robbery Insuring Clause, Kidnapping, Extortion Threat and Express Kidnap Coverage, for loss of property or other consideration surrendered on any Premises unless brought onto the Premises after receipt of the ransom or extortion demand for the purpose of paying such demand, provided that this Exclusion (3) shall not apply to loss resulting from Express Kidnap; or (4) Voluntary Disappearance, Natural Disaster, Unsafe Area Insuring Clause (G), Disappearance Investigation Expense Coverage, for Expenses or Legal Liability Costs resulting from Disappearance Investigation if: (a) an Insured Person disappears of his or her own volition, provided that any amounts paid to the Parent Organization in connection with such voluntary Disappearance shall be refunded by the Parent Organization to the Company in the event the Disappearance is determined to be voluntary; (b) (c) the Disappearance occurs within twenty-four hours of a natural disaster which is reported by local or global media; or the Disappearance occurs while an Insured Person is located in an area declared unsafe or uninhabitable by a local government. IV. PERSONAL ASSETS In the event of a ransom or extortion demand directed against an Insured Person rather than against an Organization, property or other consideration surrendered or intended to be surrendered by or on behalf of such Insured Person and only the: Expenses set forth in Paragraphs II(1) through (11) and (16) through (18) of the definition of Expenses; and Express Kidnap Costs set forth in Paragraphs II through (E) of the definition of Express Kidnap Costs, incurred by or on behalf of such Insured Person shall, at the option of the Organization, be considered property or other consideration surrendered or intended to be surrendered on behalf of an Organization and Expenses incurred by an Organization (12/2010) Page 10 of 14

11 V. PROOF OF LOSS AND LEGAL PROCEEDINGS Knowledge possessed by, or discovery by, an Insured shall be deemed knowledge possessed by, or discovery by, all Insureds. It is a condition precedent to coverage that at the earliest practicable moment after the occurrence of any loss hereunder the Parent Organization shall give the Company written notice thereof and shall furnish to the Company affirmative proof of loss with full particulars. No Insured shall institute legal proceedings against the Company after the expiration of a period of two (2) years immediately following the time such loss was sustained. VI. LIMITS OF LIABILITY The Company s maximum liability for each loss shall not exceed the applicable Limits of Liability set forth in Item 2 in the KR&E Declarations, regardless of the number of Insureds sustaining the loss. The payment of loss under this shall not reduce the liability of the Company for other losses, provided that the maximum liability of the Company will not exceed the dollar amount set forth in Item 2 in the KR&E Declarations: (1) applicable to Insuring Clause, Kidnapping, Extortion Threat and Express Kidnap Coverage: for all loss of property and other consideration actually surrendered as ransom and extortion payments arising from one Extortion Threat, Kidnapping or Express Kidnapping or a series of related Extortion Threats, Kidnappings or Express Kidnappings; (2) applicable to Insuring Clause, Custody Coverage: for all loss of property and other consideration intended as ransom and extortion payments arising from one Extortion Threat or Kidnapping or a series of related Extortion Threats or Kidnappings; (3) applicable to Insuring Clause, Expense Coverage: for all Expenses arising from one Kidnapping, Extortion Threat, Political Threat, Hijacking or Wrongful Detention or a series of related Kidnappings, Extortion Threats, Political Threats, Hijackings or Wrongful Detentions; (4) applicable to Insuring Clause, Accidental Loss Coverage: (a) (b) (c) (d) (e) if an Insured Person suffers a covered Mutilation, the Company s maximum liability for such Mutilation shall be the amount equal to the percentage set forth in Item 2(iii) of the KR&E Declarations of the Loss of Life Benefit Amount; if an Insured Person suffers a covered Accidental Loss (other than Mutilation or Loss of Life) the Company s maximum liability for such Accidental Loss shall be the amount equal to the percentage set forth in Item 2(iv) of the KR&E Declarations of the Loss of Life Benefit Amount; if an Insured Person suffers a covered Loss of Life the Company s maximum liability for such Loss of Life shall be the Loss of Life Benefit Amount; if an Insured Person suffers more than one covered Accidental Loss the Company s maximum liability for all such Accidental Loss shall be calculated based on Subparagraph (a), (b) and (c) above, provided that in no event shall the Company s maximum liability for all such Accidental Loss exceed the Loss of Life Benefit Amount; or if more than one Insured Person suffers covered Accidental Loss resulting from the same Kidnapping, Wrongful Detention, Extortion Threat, Political Threat or Hijacking, the Company s maximum liability for all such Accidental Loss shall be calculated based on Subparagraphs (a), (b), (c) and (d) above, provided that in no event (12/2010) Page 11 of 14

12 shall the Company s maximum liability for all such Accidental Loss exceed the Event Benefit Amount; (5) applicable to Insuring Clause (E), Legal Liability Costs Coverage: for all Legal Liability Costs arising from one Kidnapping, Hijacking, Political Threat, Wrongful Detention, Hostage Crisis or Express Kidnap or one event described in Subsection of the definition of Extortion Threat or a series of related Kidnappings, Hijackings, Political Threats, Wrongful Detentions, Hostage Crises or Express Kidnaps or a series of related events as described in Subparagraph of the definition of Extortion Threat; (6) applicable to Insuring Clause (F), Emergency Political Repatriation Expense Coverage: for all Repatriation Expenses arising from one Emergency Political Repatriation or a series of related Emergency Political Repatriations; (7) applicable to Insuring Clause (G), Disappearance Investigation Expense Coverage: for all Expenses for Disappearance Investigation arising from one Disappearance or a series of related Disappearances; (8) applicable to Insuring Clause (H): for all Express Kidnap Costs arising from one Express Kidnap or a series of related Express Kidnaps; or (9) applicable to Insuring Clause (I), Hostage Crisis Costs Coverage: for all Hostage Crisis Costs arising from one Hostage Crisis situation or a series of related Hostage Crisis situations. For all covered Recall Expenses occurring during the Policy Year, the Company s maximum liability shall be twenty-five percent (25%) of the Limit of Liability set forth in Item 2, Expense Coverage, of the KR&E Declarations, up to a maximum limit of liability of one million dollars ($1,000,000), which amount is part of, and not in addition to, the Limits of Liability set forth in Item 2, Expense Coverage, of the KR&E Declarations. For all covered rest and rehabilitation expenses incurred during the Policy Year, the Company s maximum liability shall be one hundred thousand dollars ($100,000), which amount is part of, and not in addition to, the Limits of Liability set forth in Item 2, Expense Coverage, of the KR&E Declarations. VII. LIABILITY FOR PRIOR LOSSES Coverage shall be available for loss as a result of a Kidnapping, Extortion Threat, Wrongful Detention, Political Threat, Hijacking, Disappearance, Express Kidnap or Hostage Crisis which occurred or was communicated to the Organization, prior to the inception date of this Policy, prior to the effective date of coverage for any additional Insureds or prior to the effective date of any coverage added by endorsement, if: (1) an Organization or some predecessor in interest of such Organization carried a prior policy, which at the time such Kidnapping, Extortion Threat, Wrongful Detention, Political Threat, Hijacking, Disappearance, Express Kidnap or Hostage Crisis occurred or was communicated, afforded some or all of the coverage of an Insuring Clause under this Coverage Part applicable to such prior loss; (2) such coverage continued without interruption from the time such Kidnapping, Extortion Threat, Wrongful Detention, Political Threat, Hijacking, Disappearance, Express Kidnap or Hostage Crisis occurred or was communicated, until the inception date or effective date(s) as described above; and (3) such Kidnapping, Extortion Threat, Wrongful Detention, Political Threat, Hijacking, Disappearance, Express Kidnap or Hostage Crisis was first discovered by an Organization after the time allowed for discovery under the last such policy (12/2010) Page 12 of 14

13 If such prior policy carried by an Organization or predecessor in interest of such Organization was issued by the Company or any subsidiary or affiliate of The Chubb Corporation, such prior policy shall terminate as of the inception of this Policy and such prior policy shall not cover any loss not discovered and noticed to the Company prior to the inception of this Policy. The Insured will neither be entitled to a separate recovery under each policy in force at the time the Kidnapping, Extortion Threat, Wrongful Detention, Political Threat, Hijacking, Disappearance, Express Kidnap or Hostage Crisis occurred or was communicated, sustained or discovered, nor will the Insured be entitled to recover the sum of the limits of liability of any such policies. The Company s maximum liability shall not exceed the lesser of the limit of liability of the policy in force at the time such Kidnapping, Extortion Threat, Wrongful Detention, Political Threat, Hijacking, Disappearance, Express Kidnap or Hostage Crisis occurred or was communicated, or the applicable Limit of Liability set forth in Item 2 of the KR&E Declarations. VIII. BENEFICIARY The Loss of Life Benefit Amount for Loss of Life shall be paid to an Insured Person s designated beneficiary. The Benefit Amount set forth in Item 2 of the KR&E Declarations for all other Accidental Loss shall be paid to the Insured Person, unless otherwise directed by the Insured Person. If an Insured Person suffers Loss of Life and has not designated a beneficiary, or if the designated beneficiary is not alive, the Company shall pay covered loss in the following order: (1) to the spouse or domestic partner; (2) in equal shares to the surviving children; (3) in equal shares to the surviving parents; (4) in equal shares to the surviving brothers and sisters; or (5) to the estate, of the Insured Person. IX. NON-ACCUMULATION OF LIABILITY When there is more than one Insured, the maximum liability of the Company for loss sustained by one or all Insureds shall not exceed the amount for which the Company would be liable if all losses were sustained by any one Insured. Regardless of the number of years this coverage remains in effect and the total premium amounts due or paid, the limit of liability of the Company with respect to any loss shall not be cumulative from Policy Year to Policy Year or from Policy Period to Policy Period. X. LOSS SUSTAINED A loss shall be deemed to have been sustained under: Insuring Clause, Kidnapping, Extortion Threat and Express Kidnap Coverage, at the time of surrender of the ransom or extortion payment; Insuring Clause, Custody Coverage, at the time of actual destruction, disappearance, confiscation or wrongful abstraction of the property or other consideration; Insuring Clause, Expense Coverage, at the time of payment of incurred Expenses by an Organization; (12/2010) Page 13 of 14

14 (E) (F) (G) (H) (I) Insuring Clause, Accidental Loss Coverage, at the time of Accidental Loss; Insuring Clause (E), Legal Liability Costs Coverage, at the time an Organization has made payment for any incurred expense, judgment or settlement; Insuring Clause (F), Emergency Political Repatriation Expense Coverage, at the time of payment of incurred Repatriation Expenses by an Organization; Insuring Clause (G), Disappearance Investigation Expense Coverage, at the time of payment of incurred Disappearance Investigation Expenses by an Organization; Insuring Clause (H), Express Kidnap Costs Coverage, at the time of payment of incurred Express Kidnap Costs by an Organization; or Insuring Clause (I), Hostage Crisis Costs Coverage, at the time of payment of incurred Hostage Crisis Costs by an Organization. XI. OTHER INSURANCE If any loss under this is insured under any other valid and collectible insurance policy (other than a policy that is issued specifically as excess of the insurance afforded by this ), this shall be excess of and shall not contribute with such other insurance, regardless of whether such other insurance is stated to be primary, contributory, excess, contingent or otherwise. The Company s liability under this for any loss of personal assets under Section IV, Personal Assets, other than a loss sustained by an Employee, shall be reduced by any amount paid or payable on account of such loss under such other insurance issued by the Company or any subsidiary or affiliate of The Chubb Corporation. XII. VALUATION AND FOREIGN CURRENCY The Company shall pay: the least of: (1) the actual market value of lost, damaged or destroyed securities at the closing price of such securities on the business day immediately preceding the day on which a loss is discovered; (2) the cost of replacing securities; or (3) the cost to post a Lost Instrument Bond, such cost shall be paid by the Company on behalf of an Organization; or the cost of blank books, pages or tapes or other blank materials to replace lost or damaged books of account or other records; or the least of: (1) the actual cash value of any other property or other consideration at the time of loss; or (2) the actual cost to repair or replace such other property or consideration with that of similar quality and value; or the United States of America dollar value of foreign currency based on the rate of exchange published in The Wall Street Journal on the day loss involving foreign currency is discovered (12/2010) Page 14 of 14